Fundamentals of Supply Chain Study

DEMAND MANAGEMENT

Which one of the following is NOT one of the four Foundations of Supply Chain Management?

Mean Absolute Deviation

_______________________ measures the size of the forecast error in units. It is calculated as the average of the unsigned errors over a specified period of time

FALSE

Material Requirement Planning is the system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.

BUS

Which one of the following is NOT a common mode of transportation in the supply chain?

TRUE

Cause-and-Effect Models can have multiple independent variables

FALSE

Collaborative Planning, Forecasting, and Replenishment is the process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services

FALSE

Forecasts are more accurate the farther out into the future that you forecast

FALSE

Master Production Scheduling is a process that brings all the demand and supply plans for the business (sales, marketing, development, production, sourcing, and finance) together to provide management with the ability to strategically direct the business to achieve a competitive advantage

Single integrator solution

Organizations that choose to implement one single system with all of the desired applications from a single vendor is said to have chosen a?

FALSE

Service firms offer intangible products (meaning products that cannot be physically touched), therefore, they do not have a supply chain.

Collaborating and sharing information between supply chain partners

Successful modern supply chain management typically includes the practice of?

TRUE

Supply Chain Management starts with understanding the flow.

FALSE

The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern.

TRUE

The Qualitative forecasting method is based on opinion & intuition

FALSE

The following diagram depicts the anticipatory business model (or push business model). Sell Product(s) to Customer => Create Supply Plan =>Buy Materials to Produce Product(s) => Manufacture Product(s) => Deliver Product(s) to Customer

True

The goal of supply chain planning is to balance supply and demand in a way that realizes the financial and service objectives of the company.

Rough-cut Capacity Planning (RCCP)

The medium-range capacity planning technique used to check the feasibility of the Master Production Schedule (MPS) is called?

MRP Explosion

The process of converting a parent item's planned order releases into component gross requirements is called?

TRUE

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy.

Collaborative Planning, Forecasting, & Replenishment

What does the acronym CPFR represent?

Seasonal Variation

When creating a quantitative forecast, data should be evaluated to detect for a repeating pattern of demand from year to year, or over some other time interval, with some periods of considerably higher demand than others. This is known as a?

Scheduled receipt

Which of the following MRP terms represents a committed order awaiting delivery for a specific period?

Bill of Materials

Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product?

Strategic partnerships are seen as one of the foundations of supply chain management

Which of the following statements is TRUE?

Naive Method

Which one of the following is NOT a type of qualitative forecasting?

SUPPLIER C AND CUSTOMER C

Based on the following diagram, which selection correctly identifies the Manufacturer's Tier 1 supply chain partner(s)? Supplier A => Supplier B => Supplier C => Manfuacturer => Customer C => Customer B => Customer A

The Bullwhip Effect

In the absence of any other information or visibility, individual supply chain participants can begin second-guessing what is happening with ordering patterns, and potentially start over-reacting. This is known as?

FALSE

Independent Demand is demand for an item that is directly related to other items or finished products, such as a component or material used in making a finished product

TRUE

It was intense global competition that led manufacturers to adopt Supply Chain Management (SCM) and other practices such as Just-in-Time (JIT).

FALSE

The goal of Supply Chain Management is to increase customer service by increasing inventory and reducing costs.